Noida, Greater Noida and Yamuna Expressway Authorities chairman Rama Raman said the budget is visionary and people will realize the impact of these tough decisions in the long run. Raman however maintained that to achieve infrastructure growth and to complete ambitious project like housing for all, there is need to initiate some more steps to review the sector.
P Sahel is the Vice Chairman of the Lotus Greens said decisions taken by finance minister Arun Jaitley in the Union Budget are in view of achieving the long-term vision that has been articulated through a range of initiatives, such as Infrastructure development, Housing for All, DMIC, boosting real estate investments through REITs and the formation of an Expert committee for reviewing the multiple clearances for projects. However the proposal of increasing the service tax from 12.36 % to 14%, perhaps will lead to high construction cost due to increase in material & end-product cost. "The declaration to introduce 'Benami' Property Transaction Bill could further ensure more transparency thereby creating a more professional environment in the sector. As a double digit GDP growth has been estimated by the government in the long run, this will create a positive business sphere for overall sector. We would have also liked to see some enterprising incentives for Sustainable Development in real estate," Sahel said.
"Although the finance minister in his Budget Speech has announced construction of 2 crore houses in rural India and 4 crore houses in urban areas, no concession either for home buyers or for the developers has been given in the Budget. When we are talking about housing for all by 2022 and boosting infrastructure, then initiatives should be taken to encourage the sector," Supertech? ?chairman RK Arora?? said.
"Ambitious Housing for All by 2022 project is a challenge and this mission can be carried forward by accelerating reforms through time bound approval processes, developing infrastructure, new satellite towns and providing loans at lower rate of interest to lower income groups. Attracting private participation is expected by giving infrastructure status to housing and these reform initiatives. However the increase in service tax on construction and excise duty on inputs apart from cess on petrol and diesel coupled with increase input cost and create further burden on real estate sector at a time of sluggish demand," said SS Bhasin, MD Bhasin group.
"Budget 2015 was balanced and has shown a roadmap for the infrastructure with an investment of Rs 70,000 crore which will certainly give a boost to ancillary industries such as real estate. The host of announcements such as allotting Rs.22,000 crores for housing development and Regulatory reform law for infrastructure development towards the development of a single window clearance are expected to change the general sentiment from being negative and neutral to being more positive. However, there were no announcements to grant an industry status to the real estate sector, which would have enabled the sector to raise debt from financial institutions and foreign institutional investors (FIIs) at a much lower rate thus partly relieving the liquidity crunch crisis and also passing on the lower costs to the end users," RK Panpalia, MD, Wave Infratech.
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